TanzaniaŹ¼s Economic Overview
Despite persistent global economic uncertainties, Tanzania’s economy remained resilient in 2025, supported by prudent macroeconomic policies, continued public investment and
sustained private sector activity. Real GDP grew by 5.9%, while nominal GDP increased to TZS 234.1 trillion (USD 91.8 billion), reflecting continued expansion across key sectors of the
economy. Inflation remained stable at 3.4%, within the Government’s medium-term target range, while private sector credit grew by 20.2%, supporting increased economic activity and
investment.
The external sector remained stable throughout the year. Foreign exchange reserves reached USD 5.7 billion, sufficient to cover 4.4 months of imports, while the Tanzanian Shilling
appreciated by 2.7% against the US Dollar during the year ending April 2026. These developments reflect continued stability in the country’s external position and foreign exchange
market.
Government revenue performance remained strong, with total collections reaching TZS 34.75 trillion, equivalent to 101.8% of the target. Tax revenue amounted to TZS 28.10 trillion,
representing 105.1% of the target, driven by improved economic activity, expansion of the tax base and enhanced tax administration measures.
The Government continued to prioritise strategic investments in infrastructure and social services, including roads, railways, energy, water and healthcare. Notable achievements during
the year included the commissioning of the 2,115 MW Julius Nyerere Hydropower Project, continued implementation of the Standard Gauge Railway (SGR), and expansion of rural
electrification and water infrastructure projects. These investments are expected to further enhance productivity, connectivity and long-term economic growth.
Public debt remained sustainable, standing at TZS 114.34 trillion as at March 2026. The present value of debt-to-GDP ratio stood at 39.6%, well below the sustainability threshold of 55%,
underscoring the Government’s commitment to prudent fiscal and debt management